News

Insightful articles on the world of finance and investing

5 Apr 2018
Life is for Living

All the technical talk about investment and superannuation and asset allocation overlooks a few key principles for everyone – life is for living and it’s important to strike a balance in all things, including saving versus spending.  Jim Parker from Dimensional – a highly regarded author and business journalist – has shared these great insights about how to manage the tension between enjoying what you have today and putting money aside for the future.

How Much Do You Need?
Feeling more comfortable about saving for retirement often comes down to setting out in practical terms the kind of lifestyle you want. You also need to consider the costs of aged care and inevitable medical bills. Your Cambridge Advisor will be able to sit down and help you work out how much is enough – and the sooner you can do this, the better.

Finding Your Own Balance
Most people are constantly trying to strike a balance between enjoying life now and ensuring they have the resources to enjoy life later. The good news is there is no ideal balance. It depends on your own goals, needs, resources and expectations. But there are ways of thinking through this challenge.
How do you strike the right balance between saving for the future and enjoying life now? Start by accepting there is no such thing as perfect.

The YOLO Principle
Many people live unnecessarily frugal lives in retirement for fear of running down their principal. But isn’t enjoying the money you’ve saved the entire point? Yes, there is a risk of running out of money. Equally, there is a risk that you never enjoy what you have. Tony Isola recommends the ‘YOLO’ Principle (You Only Live Once).
Which is the bigger worry in retirement – running out of money, or failing to enjoy the money you have saved? Only you can answer that question, but having a clear picture of what you have and how long it will last will definitely help you decide.